G4S plc G4S to resume dividend for 2021 with clear potential for significant further cash returns to shareholders - Seite 2
G4S is now well-positioned to accelerate sustainable profitable growth, and we are confident that we will deliver our financial targets including free cash flow in excess of £1 billion from 2021 to 2025.(2) That confidence is reflected in our intention to resume dividends for 2021.”
The letter from the Chairman of the Board of G4S to G4S shareholders, set out in the Circular, is extracted below.
LETTER TO G4S SHAREHOLDERS FROM THE CHAIRMAN OF G4S
105 Victoria Street
T:+44 (0)207 963 3100
25 November 2020
I wrote to you on 29 October 2020, setting out the reasons why the Board of G4S unanimously rejected GardaWorld’s wholly inadequate Offer of 190 pence per share on the basis that it significantly undervalues G4S and is not in the interests of shareholders and other stakeholders. I am writing to you today to update you on the Company’s position, performance and prospects. We continue to urge you to reject GardaWorld’s Offer.
G4S is an outstanding business with excellent prospects. This document sets out why we have a high degree of confidence in our ability to deliver value for our shareholders and our other stakeholders:
We are confident in achieving our financial targets, including:
- Revenue growth of 4-6% per annum
- Profit(1) margin expansion to 7% in the medium term(2)
- Free cash flow in excess of £1bn from 2021-2025(2)
- Leverage of 2.0-2.5x
- Reflecting our confidence in the Company’s outlook, we intend to resume dividends for 2021 and beyond
- We are committed to disciplined capital allocation. There is clear potential for significant further cash returns to shareholders, arising from both strong free cash flow generation and any disposal proceeds.
As the equity market recovers from the pandemic, and as we successfully execute on our strategic and financial plan, we firmly believe that G4S is well positioned to re-rate, at least in line with the valuation multiple of Securitas, our closest peer.